Here’s a few tips on making a few small decisions that could save you lots of anguish later on.

If there’s one thing certain about business, it’s that you’re going to have to pay taxes. Knowing which taxes your business will have to pay and how much can help save some much needed operating money. After all, one mistake can cost you if you’re not careful.

Planning now for next year is not only wise but can help you determine how to minimize your taxes so prepare cautiously and it might even be a good idea to get second opinions to maximize deductions. If you are not careful to manage your business carefully, you could end up in trouble. There are a variety of taxes for business:

  • Income taxes
  • Employment taxes
  • Sales taxes
  • Excise taxes

Accurate recordkeeping is a must. Use a software based system that enable you to track your income and expenses. Create file systems to store and track your receipts. Keep a log of the mileage you use on your vehicle. Under the tax law, most of your expenses for business are deductible. Stay current with changes in the tax law. It changes often throughout the year based on legislation, court hearings, and IRS rulings.

Finally, be cautious to place trust just in your tax preparer. Finding a professional for a second opinion with dual degrees both in tax preparation and tax law could possibly save you from any complicated tax matters that could arise because your tax preparer did not know the latest laws or was misinformed.

Written by Elizabeth Wasserman; Edited by Bill Sorensen